Bulgaria in the Eurozone: Lagarde on the Benefits of Membership

An atmosphere of marked satisfaction prevails at the European Central Bank (ECB). Bulgaria's accession to the Eurozone from January 1, 2026, is met with great joy, when the country will become a full member of the currency union. This was stated by the President of the ECB, Christine Lagarde, in an interview for the Bulgarian National Television, broadcast in the program "The Interview".

According to her, Bulgaria will benefit from the stability, liquidity, and advantages of the common currency.

Speaking to journalists, Lagarde pointed out specific benefits from the upcoming membership. Bulgaria will get a seat at the table of the Governing Council. The Governor of the Bulgarian National Bank, Dimitar Radev, will represent the country, having the right to vote and express opinions, participating in monetary policy decisions that will be made in Frankfurt. In September, the Governor of the BNB attended a meeting of the Governing Council of the ECB for the first time, initially in the period until the beginning of next year, in the capacity of an observer.

The transition to the euro brings significant changes, Lagarde emphasized. Bulgarian citizens and businesses will be able to make money transfers, travel and conclude deals throughout the Eurozone without the need to exchange currency. The need to account for currency fluctuations, as well as concerns about changes in the value of the lev, are eliminated. The monetary unit will be one for all, Lagarde stressed, which gives flexibility and stability, given its clear knowledge. She added that the euro is a strong currency, considered the second reserve currency in the world.

Lagarde explained the benefits of the banking sector's accession to the Eurosystem. Membership means greater stability, access to more liquidity, participation in a larger group of banks, and coordinated supervision within the system. "Therefore, I believe that in terms of stability and access to liquidity - this is a real advantage," the ECB president was categorical.

In response to questions regarding citizens' concerns about prices and inflation related to the replacement of the lev with the euro, Lagarde noted that changes inevitably give rise to concerns. It is possible that there will be a slight increase in prices as a result of the transition, but overall, no significant changes are expected in the longer term.

Institutions can take measures to prevent abuses during the transition from the lev to the euro, Lagarde also pointed out. A mechanism for currency conversion from lev to euro is to be introduced, which should function for at least one year. People will be able to see and compare prices in lev and euro to check the correctness of the conversion.

It is crucial to apply the rules by the institutions, as the principle is currency conversion without variations, as specified by the ECB president. A strict check is needed to ensure compliance with the rules by large retail chains, as well as by smaller traders such as cafes and shops.

In conclusion of the interview, Christine Lagarde shared that she has never visited Bulgaria, but announced an upcoming visit in connection with the country's accession to the Eurozone.